SKRIPSI FIX
THE EFFECT OF STORE ONLINE ATMOSPHERE ON PURCHASE INTENTION WITH ATTITUDE TOWARDS WEBSITE AS MEDIATION
(STUDY CASE ON LAZADA.CO.ID IN MALANG)
By: INNO KARSA ANDIKA 135020207121026
MINOR THESIS Presented in Partial Fulfilment of the Requirements for the Degree of Bachelor of Economics and Business MAJOR IN MARKETING INTERNATIONAL UNDERGRADUATED PROGRAM MANAGEMENT FACULTY OF ECONOMICS AND BUSINESS UNIVERSITY OF BRAWIJAYA 2018
APPROVAL PAGE
STATEMENT OF ORIGINALITY
I, the undersigned:
Name
: Inno Karsa Andika
Student ID
: Economics and Business
Address
: PCI Blok E 25 no 19-20, Komp. Halmahera , Cilegon
,Banten. Hereby certify that I am the sole author of the Undergraduate’s thesis the title: “THE EFFECT OF STORE ONLINE ATMOSPHERE ON PURCHASE INTENTION
WITH ATTITUDE TOWARDS WEBSITE AS MEDIATION (STUDY CASE ON LAZADA.CO.ID IN MALANG)”
This thesis has not previously been submitted for a degree in any other University or instituition. I certify that, to be the best of my knowledge. My thesis does not infringe upon anyone’s copyright and does not violate any proprietary rights that any ideas, techniques, quotation or any other material from the work of other people included in my thesis.
If my statement is proven to be incorrect, I agree to accept existing academic sanctions. This statement was made under full awareness and consciousness, to be used when necessary.
Malang,10th of January 2018 Inno Karsa Andika
NIM. 135020207121026
CURRICULUM VITAE
Name
: Inno Karsa Andika
Student Number
Place and Date of Birth
: Malang, 17th of January 1994
: PCI Blok E 25 no 19 , komp. Halmahera, Cilegon,
Banten
Email phone number
: innokarsaandykagmail.com
EDUCATIONS
2013-Present University of Brawijaya Malang Bachelor Degree, Faculty of economic and business, Majoring in management ( International) , Current GPA : 3,32 2012-2013
University of Diponegoro , Semarang D3 Marketing
2009-2012
Senior High School 2 Krakatau Steel Cilegon
2006-2009
Junior High School, Raudhatul Jannah Cilegon
2000-2006
Elementary School Al-azhar Syifa Budhi YPWKS, Cilegon
ORGANIZATIONAL EXPERIENCES
Management Edutaiment – Event Divison
EXCHANGE PROGRAM
2016 – Exchange Flinders University, Adelaide,Australia
SKILL AND INTEREST
1. Bahasa Indonesia
: Fluent
2. English
: Excellent, both in writing and speaking
ACKNOWLEDGEMENT
Alhamdullilah, the writer would like to address the most sincere gratitude to the one and only God, the Almighty Allah SWT for making the completion of the minor thesis entitled : “The Effect of Store Online Atmosphere on Purchase Intention Through Attitude Toward Website as Mediation Study Case on website Lazada.co.id” possible
This minor thesis writing is primarily aimed at meeting the requirement to achieve the degree of Bachelor of Economics and Business with major in Marketing, Faculty of Economic and Business, University of Brawijaya.
Therefore, the writer would also like to gratefully acknowledge all the help, support, and prayers of the following people during the process of completing minor thesis:
1. Allah SWT. Thank you very much for giving me everything. Faith that you have built in each person that form me strength and passion to complete this writing in such a perfect time.
2. Prof. Chandra Fajri Ananda, SE., M.Sc., Ph.D as the Dean of Faculty of Economics and Business, Brawijaya University.
3. Mrs. Andarwati, SE.,ME.,SCRM as the Head of International Program in Management.
4. Mr. Dimas Hendrawan, SE., MM. as the writer‟s supervisor, who has given his counsel, guidance, support, and motivate, enabling this thesis to be done.
5. My beloved parents, Raswono Hari Prabowo and Wahyu Dwi Hendrawati, for all those support that I cannot reply as deep as yours, thank you for the loving and care.
6. Management International 2013, who gave me support and help me through many hard times.
7. All those friends and relatives that I cannot mention specifically, I believe you guys have planted seed of success within myself and I will come back to pour the water to you guys and we will grow together.
The writer realizes that this minor thesis still needs lot of betterments and improvements, therefore, heshewould highly appreciate any suggestion, comment, and criticism to upgrade our knowledge in the future. Finally, the writer hopes that this minor thesis can be of much help and benefit for all of us. Amin
Malang,November 2017
THE EFFECT OF STORE ONLINE ATMOSPHERE ON PURCHASE INTENTION WITH ATTITUDE TOWARDS WEBSITE AS MEDIATION (STUDY CASE ON LAZADA.CO.ID IN MALANG)
By: Inno Karsa Andika
Faculty of Economics and Business, University of Brawijaya Email: innokarsaandikagmail.com
Supervisor: Dimas Hendrawan, SE., MM. ABSTRACT
The purpose of this research is to analyze the influence of store online atmosphere on purchase intention with attitude toward website as a mediator in website Lazada.co.id in Malang. The sample in this study was customers of Lazada website in Malang Area. The research is explanatory research which explains the causal relation between the variables through hypothesis testing. The data collection technique of this study uses questionnaires and literature study. This study used 100 samples of Lazada.co.id visitor in Malang. Those samples were taken using a purposive sampling technique. Test instrument that are used for testing the research instrument are validity test, reliability test, and classical assumption test. The analytical methods that were used are path model analysis and hypothesis testing are conducted with t test using SPSS 21The result of this study shows with using testing t is concluded that each of Store online atmosphere has significant and direct effect toward Attitude toward website. Therefore, Store online atmosphere also has significant and direct effect toward purchase intention. Attitude Toward website has significant and direct effect toward purchase intention as well. Moreover, Attitude toward website has positive effect as mediator between store online atmosphere and purchase intention in the study of Lazada.co.id.
Keywords: Store online Atmosphere, Attitude toward website, Purchase Intention
PENGARUH ATMOSFER TOKO ONLINE TERHADAP MINAT BELI DENGAN SIKAP TERHADAP SITUS SEBAGAI MEDIASI (STUDI KASUS PADA LAZADA.CO.ID)
Oleh: Inno Karsa Andika
Faculty of Economics and Business, University of Brawijaya Email: innokarsaandikagmail.com
Dosen Pembimbing: Dimas Hendrawan, SE., MM. ABSTRAKSI
Tujuan dari penelitian ini adalah untuk menganalisis pengaruh atmosfer online toko terhadap niat beli dengan sikap terhadap website sebagai mediator di website Lazada.co.id di Malang. Sampel dalam penelitian ini adalah pelanggan situs Lazada di wilayah Malang. Penelitian ini merupakan penelitian explanatory yang menjelaskan hubungan kausal antara variabel melalui pengujian hipotesis. Teknik pengumpulan data dalam penelitian ini menggunakan kuesioner dan studi pustaka. Penelitian ini menggunakan 100 sampel untuk responden pengunjung Lazada.co.id di Malang. Sampel diambil menggunakan teknik purposive sampling. Instrumen uji yang digunakan untuk pengujian instrumen penelitian adalah uji validitas, uji reliabilitas, dan uji asumsi klasik. Metode analisis yang digunakan adalah analisis model jalur dan pengujian hipotesis dilakukan dengan uji t menggunakan SPSS 21. Hasil penelitian ini menunjukkan bahwa dengan menggunakan pengujian t disimpulkan bahwa masing- masing atmosfer online Store berpengaruh signifikan dan langsung terhadap Sikap terhadap website. Karena itu, Store online atmosphere juga memiliki efek signifikan dan langsung terhadap niat beli. Sikap Menuju website berpengaruh signifikan dan langsung terhadap niat beli. Selain itu, Sikap terhadap situs web memiliki efek positif sebagai mediator antara atmosfer penyimpanan online dan niat beli dalam studi Lazada.co.id.
Kata Kunci: Store online Atmosphere, Attitude toward website, Purchase Intention
CHAPTER I INTRODUCTION
1.1 Background of the Study
The rapid development of internet in this era of globalization encourages the change of culture in human life. Currently internet connection becomes one of the reliable media to seek information, communication, entertainment, and business. There are various conveniences offered by the internet media, so the internet is a very important human need for now. Indonesia becomes one of the countries that undergoes significant increase in each year for internet users (eMarketer, 2017).
Table 1.1
Internet users in Indonesia from 2013-2016
Year
Intenet Users 2013-2016
Source : eMarketer, 2017.
It can be seen on the table 1.1, as the development of technology and information in each year, internet users in Indonesia increased significantly. In 2013 internet users in Indonesia reached 72.8. In 2014 internet users continue to increase by 83.7, and in 2015 the use of the internet reached 93.4. Until the year 2016 It can be seen on the table 1.1, as the development of technology and information in each year, internet users in Indonesia increased significantly. In 2013 internet users in Indonesia reached 72.8. In 2014 internet users continue to increase by 83.7, and in 2015 the use of the internet reached 93.4. Until the year 2016
The positive impact of internet certainly gives a good influence to the pattern of human life, including patterns of interaction in trade. With regard to business transactions, there are many business actors from small, medium and large are using and utilizing the advancement of internet technology as a means to win and advance their business. This is supported by the fact that internet users in Indonesia often visit the online shop that is 82.2 million or 62 of the population in Indonesia (APJII, 2016).
Table 1.2
The Attitide of Internet Users in Indonesia in 2016
No Online
Percentage Most
62 Online Shop
2 45,3 millions
Personal Business
Source :APJII , 2016
From table 1.2 It can be seen that in 2016, the attitude of Internet users in Indonesia
Seeing that with a high percentage of the use of an Internet then the online shop website visitors is a very significant thing in the digital era now. Another percentage of 34.2 indicates that users use the internet to do personal business and the remaining 3.8 shows that users use the internet for other things like social media and browsing. Online Shop as a means of e-commerce is needed in today's era as it can give priority to the convenience of anyone so they can can conduct transactions without having to spend more money, whether transportation or others anywhere.
E-commerce is an electronic business transaction and internal process used by a company to support purchases, sales, leasing, planning and other activities (Stair and Reynolds, 2006). In addition, e-commerce can also be defined as technology-mediated exchange between parties (individuals or organizations) as well as intra- or interorganizational-based electronic activities that facilitate such exchanges (Jeffrey Bernard, 2004).
Online shop is a process of purchasing goods or services from those who sell goods or services over the internet which between the seller and the buyer never meet or make physical contact in which the merchandise is offered through a display with an image on a website or virtual store (Laudon in Prasetio,2012). The development of online shop itself have been popping up, to date it reaches 26.2 million online trading websites (BAPPENAS, 2016). Many people are interested in buying and selling online at online websites. This is evidenced by the significant increase in each year.
Table 1.3
The Growth of Online Shop Consumers in Indonesia
Year
The total of population
The total of Online
(million )
Shop consumers (million)
Source : World Economic Outlook Internet Services Providers
Association, 2016
Table 1.3 shows that the increase of online store expenditure in Indonesia tends to increase every year. It also follows the number of population in Indonesia which also increases every year, so the number of consumers for the online store market is increasing. According to a study conducted by the World Economic Outlook Internet Services Providers Association, in 2013 it was found out that from 247 million populations, the online shop consumers reached 4.6 million consumers. The same trend happenned in 2014 as from 251 million populations in total, there was 5.9 million consumers of online shop in indonesia. Not far from 2014, in 2015 when the population reached 255 million people, it was found out that there are 7.4 million online shop consumers. Last, in 2016 of 258 million population the number of onlinbe shop consumers reached 8.7 millions. The top increasing numbers of consumers in each year Table 1.3 shows that the increase of online store expenditure in Indonesia tends to increase every year. It also follows the number of population in Indonesia which also increases every year, so the number of consumers for the online store market is increasing. According to a study conducted by the World Economic Outlook Internet Services Providers Association, in 2013 it was found out that from 247 million populations, the online shop consumers reached 4.6 million consumers. The same trend happenned in 2014 as from 251 million populations in total, there was 5.9 million consumers of online shop in indonesia. Not far from 2014, in 2015 when the population reached 255 million people, it was found out that there are 7.4 million online shop consumers. Last, in 2016 of 258 million population the number of onlinbe shop consumers reached 8.7 millions. The top increasing numbers of consumers in each year
Lazada.co.id is one of the online trading websites in Indonesia that has been active in the world of online trading websites from 2012. Lazada.co.id website is a subsidiary of internet companies in Germany, the Rocket Internet. Lazada.co.id has been operating in Indonesia since January 2012 (Lazada, 2017). The Lazada.com website offers a wide range of products ranging from electronics, books, toys, baby gear, medical supplies, beauty products, household appliances, traveling supplies, and sports. Whenever and wherever consumers are located, Lazada.co.id offers an easy solution for consumers who want to buy goods via online. Lazada.com website provides online shopping experience like in mall, plus Lazada.co.id also provides convenience such as money back guarantee, free shipping, and COD (cash on delivery), so, Lazada.co.id website becomes the most popular websites in 2015 and 2016 (W S Indonesian Research Marketer, 2017)
Figure 1.1 The most popular Online Shop website in Indonesia on 2014-2016
Blibli.com
Elevenia
Zalora
Source: WS Indonesian Research Market
In the period of three years in 2014 to 2016, Lazada.co.id becomes an online store that occupied in the first position. This can be seen onTable 1.4 chart, from Popular Brand Index it places Lazada.co.id in 2015 by 34.8 and in 2016 by 26.4. There is a decrease in 2016 by 8.4 seeing from Popular Brand Index. The decline is due to the number of e-commerce websites emerging in Indonesia, for example Elevenia which is formerly that is in 2015 not included in the top five, then in 2016 Elevenia was ranked the top 5. In that case Lazada.co.id must take steps to set the strategy to maintain its position in the first rank in a long term.
Related to the situation, marketing strategy becomes the main priority that must
be owned by every company in order to achieve its goals. Basically, the company's goal embraces the concept of marketing is to provide satisfaction to consumers in fulfilling their wants and needs. That's why there should be an effective marketing strategy that is oriented to the main consumer. One of the marketing strategies in online stores is to establish online store atmosphere.
Online Store Atmosphere is defined as the color used in the website that can affect the emotions of consumers (Wann et al, 004). The look of an attractive website and the availability of information that customers need are clearly seen as supporting the success of an online store (Vrochopoulos, 2010). Part of the online store atmosphere is the background color, percentage of white spaces, background music, fonts, color scheme (Mandel and Johnson, 2004). Another design factor that defines store atmosphere for a web-based store, ie, store front design and information display. Store front design and information display is a visual factor that is the primary tool for Online Store Atmosphere is defined as the color used in the website that can affect the emotions of consumers (Wann et al, 004). The look of an attractive website and the availability of information that customers need are clearly seen as supporting the success of an online store (Vrochopoulos, 2010). Part of the online store atmosphere is the background color, percentage of white spaces, background music, fonts, color scheme (Mandel and Johnson, 2004). Another design factor that defines store atmosphere for a web-based store, ie, store front design and information display. Store front design and information display is a visual factor that is the primary tool for
Attitude is one of the most comprehensive evaluations and allows one to respond with likes or dislikes to the object being judged (Schifman and Kanuk, 2009). The attitude towards the website as an emotional evaluation arises after the consumer visits the website (Wann et al, 2014). In addition, is the expression of feelings that reflect whether someone likes or dislikes an object, the object can be the look of the website, brand, or service. To measure consumer attitudes toward the website, it can
be seen how likely someone will make a product purchase on the website (Schifman and Kanuk, 2004). Attitudes toward the website have a positive relationship with the intention of buying, it also shows that one's intentions are determined by attitudes toward the same website and others. Buying intention indicates that consumers are pursuing experience, the external desire of their environment to gather information about a product or service (Schifman and Kanuk, 2009). A positive attitude toward the website in shopping on the internet can increase purchasing intentions (Kim and Park, 2005) In addition, the positive attitude toward website influence can make consumers intend to make a purchase (Raney et al., 2003)
Buying intention can be defined as a person's intention to purchase a particular brand heshe has chosen for themselves after evaluating. We can measure purchase intentions variable eg by considering brand for purchase and expecting to buy the product in the future (Khan et al., 2012). The intention of online buying is the Buying intention can be defined as a person's intention to purchase a particular brand heshe has chosen for themselves after evaluating. We can measure purchase intentions variable eg by considering brand for purchase and expecting to buy the product in the future (Khan et al., 2012). The intention of online buying is the
Lazada has a web design with a minimalist and modern theme of interest and distinctive, with a combination of blue sea, orange and white. In addition, the info provided by Lazada online store is complete, ranging from price, discount, product description, specifications, and discussion of the product, so consumers get clear information about the products being sold, and consumers can easily choose and compare products in Lazada. This creates a store atmosphere in the form of store front design and information display on Lazada online store to be attractive, because in store front design is made with the use of attractive colors to make consumers feel interested, and on information display, complete product information ranging from product descriptions detailed, and clear product specifications. Store Atmosphere that can be accepted by the consumer well will create attitudes towards a positive website on the consumer, so it can create buying interest on the Lazada.co.id website
The development of websites through the internet is growing rapidly, so the level of competition will be higher. This is because it can easily when a new online store entered. Lazada must be able to know the behavior of consumers in order to meet increasing sales, by forming buying interest through the store atmosphere, and attitude towards the website, so if the consumer behavior of these variables can be created on online stores, then can compete with other online stores and create a difference with other online stores.
Based on the aforementioned research background then this research entitles "THE EFFECT OF STORE ONLINE ATMOSPHERE ON PURCHASE INTENTION WITH ATTITUDE TOWARD WEBSITE AS A MEDIATION (A CASE STUDY ON LAZADA.CO.ID IN MALANG )"
1.2 Problems of the research
Based on the introduction explained above, there are four research problems proposed in this research :
1. Does online store atmosphere has a significant effect on attitude toward websites of Lazada.co.id website?
2. Does the attitude toward website has a significant effect on purchase intention of Lazada.co.id ?
3. Does online store atmosphere has a significant effect on the purchase intention of Lazada.co.id ?
4. Does online store atmosphere has a significant effect on purchase intention through attitude toward Lazada.co.id website ?
1.3 Objective of the Study
Based on problems , then the research was carried out to achieve the following objectives:
1. To know if the online store atmosphere on online store has significant affect the attitudes toward Lazada.co.id website
2. To know if the online store atmosphere on online store has significant affect the purchase intention in Lazada.co.id
3. To know if the attitudes toward website has affect the purchase intention in Lazada.co.id
4. To know if store online atmosphere has affect purchase intention through attitude toward website in Lazada.co.id
1.4 Significance of Study
The results of this study are expected to provide many benefits to several parties, which are :
1.4.1 For practitioners
This research can provide insight to prospective business practitioners to:
1. Run e-commerce to develop the business and find out factors affecting the purchase intention
2. Develope marketing strategies that can increase purchase intention in Online shop
1.4.2 For Economic and Business Faculty of Brawijaya University
This research result can be used as :
1. An economic and scientific development, especially related with e- commerce and retail management.
2. This study can also be used as reference material to increase knowledge and information for further research in the development of related sciences.
1.4.3 For scholars
This research result can be used as :
1. This study is beneficial as an evaluation media of the curriculum relevance of
a wide range of majors especially in international program of management. Generally it contributes a lot to the Faculty of Economics and Business Brawijaya University.
2. This research is beneficial as a reference for future research studies that have the same basic concept on retail.management
CHAPTER II THEORETICAL FRAMEWORK
2.1 Previous researches
To provide further information and clear views, the researcher decided to discuss and analyze some previous researches. This can help the researcher to get a clear research framework and basic methods. This study uses 5 journals as the main guidance derived from Wan-yih Wu, 2013; Manganari and Adam, 2008; Angela and Jeffrey, 2008; Anis-allagui and Jean-francois, 2007; Febrianto and Jeanne 2012.
The first journal is written by Wan Yih-wu (2013). The study was conducted by distributing questioner method to 652 students in Taiwan. The results of the analysis of this study indicate that store layout design has a significant impact on the passion and emotional attitudes toward the website, and therefore has a positive influence on purchasing intentions. In addition, the atmosphere has more effect on emotional arousal than store layout design. The Second Journal of Manganari and Adam, (2008) explains that all research methods undertaken from 1998 - 2008 provide static results that online store atmosphere and consumer behavior provide static results that are interconnected with one another.
Meanwhile, the third journal by Anis-allagui and Jean-francois, (2007) is about online store store to visitors online shop in France. This study was conducted by giving a questionnaire of 171 valid questionnaires, the sample consisted of 85 men and
84 women, and the results obtained from the researcher is the online store atmosphere has a strong influence on the mood that supports to create buying interest, but the 84 women, and the results obtained from the researcher is the online store atmosphere has a strong influence on the mood that supports to create buying interest, but the
The fourth journal is by Angela and Jeffrey, in 2008 which studied 266 respondents with the first two phases classify the sample first by creating two groups: the first group is the group of people who understand the computer and the second group is the layman with the computer, the second phase provides a model of testing form questioner, and the results for the two groups of Web Atmospheric have a positive impact on affective responses and consumer behavior in the interest of buying an online shop. In a recent study Febrianto and Jaenne (2012), found that the majority of online shoppers are women aged 18-21, and the result is having a positive relationship between online store atmosphere and buying interest with attitude mediation towards the website
Table 2.1 Previous researches
No
Name and
1 Wan-Yih Wu How
can Independen:
Simple
The online store
online
store 1.Website
regression
atmosphere and consumer
layout design Atmosphere
analysis
attitude give significant
and
2.Layout Design
effect on purchase intention
atmosphere
3. Emotional Arrousal
influence
Dependent
consumer
1.Purchase Intention
shopping intention on a website?
There is no comprehensive
Manganari
Atmosphere in variables :
interdiciplin empirical
research
and
Adam Web Retailing
Store
Online er
reseach collection in online stores
The atmosphere exists in
Dependent variable :
this paper is an important
Consumer Behaviour
empirical
reference for concise
analysis
information for the future Research advice for both academician
and practitioners.
3 Anis-allagui
The effect of Independent variable
Descriptive
The main results show that
and
Jean- web interface 1.Online
Store Analysis
all atmospheric factors
Francois
features
on environment
and
have a positive impact on
mood, which in turn
strongly influence online
purchase
Dependent variable
Analysis
purchase intentions.
intention
1.Purchase Intention
However, attitude toward the website was partially explained by atmospherics and
did not impact purchase intentions.
4 Angela
dan Web Interface Independent variable
Using
The Atmospheric Web has
Jeffrey, (2008) and Consumer 1.Online
Store questionnair a positive impact on
Buying
Environment
e with 5 type affective responses and
Intention in e- 2.Attitude
toward Likert scale consumer behavior on the
tailing
website
– no further interest of buying an online information
shop
Dependent variable : Purchase Intention
5 Febrianto dan The effect of Independent Variable:
Simple
The majority of
respondents who have
Atmosphere ,
2. Layout design
regression
made purchases on
Layout
3.emotional passion
analysis
shopping websites are 18-
Design,
4.consumers attitude
21 years old. Most
Emotional
Dependent Variable:
respondents have an
Passion
and Purchase intention
average monthly allowance
Consumer
of Rp 500,000 - Rp
Attitudes
999,000, the most
Online Stores
viwebsited website by
on Purchase
respondents is Lazada.
intention
Previous research has the same variables, items, theories and methods with this study as a guidance for completing this study. Although some variables are not covered in this study. The object of each study is not similar depending on the focus, but most of the data uses the same way. It is expected that this research can help the writer to guide the research to have a clear hypothesis to know the variables measured for higher quality research results.
2.2 Marketing and Marketing Management
2.2.1 The definition of Marketing
Marketing is a process by which a company creates value for customers and builds strong relationships with customers, with the aim of capturing value from customers in return. The above understanding shows the existence of an attempt to meet the needs and the existence of a business directed to obtain these needs by establishing relationships with other parties. The scope of goods and services as well as ideas based on exchange and objectives is to provide satisfaction to the parties involved (Kotler and Armstrong, 2014).
Another definition of marketing is the process of identifying, creating and communicating values, as well as maintaining relationships that satisfy customers to maximize corporate profits. Marketing is one of the principal activities undertaken by entrepreneurs in their endeavors to sustain their survival, to grow and earn profits (Hasan, 2013).
Based on the above definition it can be concluded that the marketing has a broader meaning than sales. Marketing includes business enterprises marked by identifying consumer needs that need to be satisfied, determining the price of the appropriate product, determining the promotion and sale of the product. So, marketing is also an interconnected activity as a system to generate profit.
2.2.2 The definition of Marketing Management
Marketing management is the art and science of choosing target markets and acquiring, maintaining and growing customers by creating, delivering and communicating superior customer value (Kotler, 2009). This definition recognizes that marketing management is a process that includes analysis, planning, implementation and control of goods, services and ideas; based on exchange and its purpose is to provide satisfaction for the parties involved. Thus, it can be seen that the task of marketing management not only offers goods or services that suit their needs and market demands, establishes effective prices, communications and distribution to inform, influences and serves the market but it is also influences the level, time and composition of demand to help the company achieve its goals.
Marketing management is an analysis, planning, implementation and control program designed to create, build and maintain profitable exchanges with target markets with a view to achieving profitable goals with target markets with a view to achieving organizational goals (Djaslim Saladin, 2007 ).
From the above definition it can be seen that marketing management as a process that includes analysis planning, implementation and control, as well as From the above definition it can be seen that marketing management as a process that includes analysis planning, implementation and control, as well as
2.3 Marketing Mix
2.3.1 Understanding Marketing Mix
Marketing has a very important function in achieving corporate success. In achieving marketing success, every company needs to devise an effective marketing strategy by combining elements in the marketing mix.
Marketing mix is a collection of tactical marketing tools controlled products, prices, places, and promotions that the company needs to produce the desired response in the target market (Kotler and Ketler, 2012). To implement the marketing program effectively. The general definition of marketing mix is as follows: marketing mix is the term used to describe the combination of the four major formers of the marketing mix's core of an organization (Stanton, 2006). The four elements are product service offerings, pricing structures, promotional activities, and distribution systems. Marketing Mix is a combination of variables or activities that are at the core of the marketing system, variables that can be controlled by the company to influence the reaction of buyers or consumers (Assauri, 2004). Another definition of marketing mix is a strategy to mix marketing activities, to find the maximum combination so as to bring the most satisfactory results (Buchari, 2008).
From some of these definitions, it can be concluded that the marketing mix is
a set of marketing tools conducted by mixing marketing activities, in order to get the maximum combination to achieve marketing objectives in the target market, so it can
2.4 Retail
2.4.1 The definition of Retail Management
The word retail comes from French, ritellier, which means cutting or breaking something (Utami, 2012). In addition, retail can be defined as an activity that involves the sale of goods or services directly to the end consumer for personal and non-business use. (Kotler cited by Dessyana, 2013). Retail is a business activity selling goods or services to individuals for the purposes of self, family, or household. (Dunne and Lusch cited by Abel and Hussein, 2015). Retail is the activity and final step in delivering goods or services to end consumers (Dunne and Lusch cited by Abel and Hussein, 2015). A retail business is any activity involved in the sale of goods or services directly to the end consumer for personal use rather than business use. And retail management is understood as all the efforts undertaken in managing the retail business, which also includes management related to finance, marketing, resources, and retail business operations (Utami, 2012).
So from the above theory it can be concluded, Retailing is an activity and the last step involved in the sale of goods or services directly to the end consumer used for personal use and not the use of business or the seller.
2.5 Internet Marketing
The definition of internet marketing is web marketing, online marketing, or marketing of products or services over the internet. In this case, Internet marketing offers information and transactions more efficiently but not necessarily produce a more competitive advantage in a sustainable manner. It is very important to note that this is
Internet marketing is traditionally marketing by using the web in developing long-term relationships with customers, thereby creating a competitive edge for the company by allowing it to charge higher prices for products and services than its competitors (Laudon and Traver, 2013)
Internet marketing is the process of building and maintaining customer relationships through online activities to facilitate the exchange of ideas, products and services that can satisfy the goals of both parties (Mohammed and Jaworski, 2003)
2.5.1 Seven Stage of Internet Marketing
Internet Marketing has a variety of theories and models. One particular theory that fits this research is the theory of Seven Stage of Internet Marketing (Mohammed, fisher Jaworski, 2003)
Figure 2.1 Seven Stage of Internet Marketing
Source : (Mohammed, Fisher, Jaworski, 2003)
2.5.1.1 Phase 1: Framing the Market Opportunity
This stage includes analyzing market opportunities and collecting data from online and offline systems to create opportunities. Ways of market opportunity analysis can be seen from the six steps listed below:
1. Investigate Opportunities on the Value of Current System or New System.
In this section it is used to identify broadly which areas will be entered into by new companies and what opportunities can be obtained to enable companies to enter the market.
2. Identify Unmet Customer Needs
The creation of a new value is based on doing a good job of looking at what the customer needs by identifying the business processes within the existing company to see if the current system meets the customer's needs or not.
3. Determining Target Customer Segmentation
Segmentation is the process of grouping customers based on their similarity. After grouping customers into different segments, the company must determine the target segment of the company.
4. Assess the Resources Needed to Offer
At this stage, the company must identify the resources that can be offered to customers as well as that technology
5. Assess the Power of Competition, Technology, and Corporate Finance on Opportunities
6. Assess Go No Go
At this stage, the final decision-making based on every available opportunity is
2.5.1.2 Phase 2: Formulating the Market Strategy
In the previous stage has been taken Go No-Go decision, then the next step is to determine the online marketing strategy. This stage includes three main components, namely:
2.5.1.3 Stage 3: Designing the Customer Experience
At this stage we will strive to design the experiences we expect to get from customers of the company. There are three stages in building customer experience, namely:
1. Functionality - "Website works well" These are the factors that determine whether the website created will work properly or not. These factors are:
a. Usability and Ease of Navigation: it ismeasured by how well a
b. Speed: it refers to the time it takes to display a web page on the user's screen.
c. Realibility: it describes the degree to which a website experiences a downtime period, or a time when the user does not have access to the web by maintenance.
d. Security: customers want to know they can trust a particular website, when security and comfort are combined, the customer experience is improved.
e. Media Accessibility: is the ability of a website to retrieve data on various media platforms.
2. Intimacy - "They understand me"
At this stage, the customer feels that the company has deeply understood the needs and desires of those generally embodied in the various customization for the website look that the customer wants. The customer is obtained by:
a. Customization: an ability of a website to change itself for every user.
b. Communication: it refers to a conversation between the website and its users.
c. Clearly: Good communication requires high achievement on the online vendors.
d. Consistency: refers to the degree to which the customer experience on one website can be repeated over time.
e. Trustworthiness: a hallmark established over time, once users have had several opportunities to evaluate the company's services.
f. Exceptional Value: the company offers other added value so that the user will not be easily persuaded by other companies.
g. Shift Consumption to Leasure Activity: customers no longer feel that the visit to the website is as a task or a burden, but as a visit for pleasure.
3. Evangelism - "I love sharing stories" At this stage the customer will be the disseminator of information about the
company's website, and indirectly promote the company to relatives, relationships, company's website, and indirectly promote the company to relatives, relationships,
b. Active Community Membership: characterized by community participation.
c. The Company Cares About My Opinions: an important key of this stage is a perception that any company will not be able to process the experience without the user, or that the user is very open to help the company.
d. Defender of the Experience: customers who reach this stage are those who defend their pandanus angle, so they can get very angry when others disagree or buy competing offers.
2.5.1.4 Stage 4: Crafting the Customer Interface
In designing a good interface, a 7C's Frameworks is used to identify the main view design faced when implementing a business model. These elements, namely:
1. Context: A web page must be able to capture the aesthetics and function can see and feel. Its main focus is on an attractive graphical display, colors and designs, while others have emphasized objectives that can be useful like making navigation. Three critical factors in the appearance sebuha website, namely:
a) Section Breakdown Subcomponent
b) LinkingStructure
c) Navigation Tools
2. Content: Content can be affirmed with all the things that are digital in a website.
graphics that can convey the message clearly, including products, services and provision of information. The four main dimensions in contenct are:
a) Offering Mix
b) Appeal Mix
c) Multimedia Mix
d) Content Type
3. Community: Relationships that are built on the same interest in something, whether between the customer with the company and the customer with the customer can attract customers to re-visit the website again.
4. Customization: It is the ability of a website to be modified either by the company or by each customer.
5. Communication: it is a dialogue involving the website and its users. This communication can occur in three forms:
a. Company to customer (e-mail)
b. Customers to the company (customer service)
c. Customer to customer (instant message)
6. Connection: a network that connects one website to another.
7. Commerce: The ability of the website in conducting transactions on the sale of goods, products or services with shopping charts, delivery and payment options, inspection and order confirmation.
2.5.1.5 Stage 5: Designing the Marketing Program
At this stage is the design of marketing programs is used to aggregate marketing At this stage is the design of marketing programs is used to aggregate marketing
1. Awareness
The stage in which the customer has basic knowledge information or views on the company or products offered by the company but it has not started communication with the company.
2. Exploration Expansion
The stage in which customers begin to communicate and act is likely to lead to closer relationships, where customers begin to be interested in exploring the company's website and look for information in it.
3. Commitment
This stage involves a responsibility to the product or company. Customers will periodically access the website and provide views and attitudes that reflect loyalty.
4. Dissolution
This stage occurs when one or both parties (companies and customers) disconnect.
2.5.1.6 Stage 6: Leveraging Customer Information Through Technology
Companies can use technology help in acquiring, analyzing, and utilizing information about customers so that the company will better understand and know customers to know what customers need. This can be done through:
It is a tool that helps a company to understand and fulfill the wishes and wishes of its customers, which can provide information on the quality and usefulness of the products and services customers need.
2. Database Marketing
Is a tool consisting of acquiring customer information. Analyzing this information is useful for estimating customer responses on particular offers, and making marketing decisions based on expected responses.
3. Customer Relationship Management
It is a tool that establishes long-term profitability from customers and maintains key customers. Customer information is the power and customer information system can make the company increase its strength.
2.5.1.7 Stage 7: Evaluating Marketing Program
This last stage evaluates all marketing programs whether it reaches the target or not. It uses parameters to measure the success of an online marketing program and whether it matches the objectives of the company. In this phase, it uses the Marketing Metrics Framework which consists of:
1. Financial Metric: it is used to measure basic results of the overall level.
2. Customer-Based Metrics: it is used to see the performance of marketing in building customer-oriented assets that will be generated financially.
3. Implementation Metrics: it is used to see how effective and good performance elements in marketing programs are in terms of building customer-oriented assets.
2.6 E-commerce
Electronic commerce is the buying, selling and marketing of goods and services through electronic systems such as radio, television and computer network or internet (Wong, 2010). Then there is another e-commerce understanding of business transactions and internal processes which are electronically used by companies to support purchases, sales, leasing, planning and other activities (Stair and Reynolds 2006). E-commerce is the use of internet and web for business transactions formally and digitally between organizations and individuals (Loundon and Traver, 2012).
There are 8 unique features in e-commerce technology (Loundon and Traver, 2012):
1. Ubiquity: Internet web technology is available anywhere such as office, home and other places and can be accessed via mobile devices.
2. Global Reach: Internet web technology that has been able to reach the whole world.
3. Universal Standards:A technology standard that is spread by all countries to the world.
4. Richness: The wealth of information refers to the complexity and content of
a message, such as video, audio and text messages.
5. Interactivit: Technology that enables 2-way communication between sellers and buyers resulting in transactions.
6. Information Density: Technology in reducing costs in obtaining information and improving the quality available to all market participants.
7. Personalization Customization:Seller may target his marketing to customers specifically by obtaining customer information such as name, interests or last purchase.
8. Social Technology: User Content Generation and Social Networking, Internet and e-commerce have grown to be more open by making it easier for customers to create and distribute content or information on a web or social media such as photos, videos, music to the whole community.
2.6.1 Category of E-Commerce
The four general categories of e-commerce include:
1. Business-to-customer (B2C). In B2C companies sell products or services to individual customers.
2. Business-to-business (B2B). In B2B companies sell products or services to other companies.
3. Consumer-to-consumer (C2C). In this C2C participants in the online market can buy and sell goods. Because one party acts as a seller, thus it is considered as a company. C2C transactions may also fall into the B2C category.
4. Business-to-government (B2G). In B2G companies sell products or services to government and government agencies. Therefore B2G is considered as a part of B2C.
Of the four categories described above, there are two most commonly used categories of e-commerce namely B2C and B2B.
2.7 Store Atmosphere
2.7.1 Definition
Store Atmosphere is the design of the environment through visual communication, lighting, color, music, and perfume to design an emotional response and customer perception and to influence customers in buying goods (Utami, 2006). Atmosphere is a planned atmosphere that suits the target market and which can attract consumers to buy as store atmosphere causes or affects purchases (Kotler, 2005). Store Atmosphere is a combination of physical characteristics of stores such as architecture, layout, lighting, display, color, temperature, music, aroma as a whole will create the image in the form of consumers (Utami, 2010).
Store Atmosphere can be described as a change to the design of a purchasing environment that produces special emotional effects that can lead consumers to purchase actions. A store must establish a planned atmosphere in accordance with its target market and can attract consumers to buy in the store. Store atmosphere affects the shopper's emotional state, which then encourages to increase or decrease spending. Emotional state consists of two dominant feelings (pleasure or passion). The combination of these elements affects consumers to spend less or more time in the store. For more details explanation, it can be seen in the picture below:
Figure 2.2
Atmosphere and Purchase Behaviour
Atmosphere Respones
Type of
Component Affect
Component Affect
Behaviour
a) Display Layout
a) Pleassure